Intel and Creative Technology have announced a new deal that is worth $50 million. Creative Technology will be licensing its chip technology to Intel and selling Intel its UK subsidiary ZiiLabs Limited. Intel would be paying $20 million to license high-performance GPU technology owned by ZiiLabs.

The other $30 million will cover the transfer of engineering resources and assets of ZiiLabs Limited.

"As the next-generation advanced media processors beyond 28 nanometers (nm) become increasingly complex and expensive to develop, we must find new models to work with our partners and customers to drive continued product innovation," said Sim Wong Hoo, CEO of Creative Technology.

"With this announcement, we gain increased flexibility with the ability to partner with multiple semiconductor companies on advanced design and process technologies, allowing us to mitigate risk while maintaining control over the long-term direction of our product portfolio."

The transaction between Creative and Intel will be completed by the end of the year. Creative is divesting parts of its business and will be focusing on its audio products, which is considered its core strength.